Last year it took two weeks for the effect of Police Squad's interest rate hike to monkey hammer global markets. This year it took less than 24 hours.
The World Ex-U.S. is selling off from the EXACT SAME LEVEL as last December, albeit an inconvenient two weeks earlier...
"Are you sure you don't know where the bodies are buried? I think you do..."
THIS JUST IN:
"China's central bank stepped in to urge major commercial banks to lend to non-bank financial institutions on Thursday afternoon after many suspended interbank operations amid tight liquidity conditions"
"Caixin said that traders pointed to worsening sentiment among banks about market conditions and growing caution over interbank lending, especially after the U.S. Federal Reserve triggered a sell-off in the [Chinese] bond futures market on Thursday by signaling more rate hikes in 2017"
"The rest of the world could no longer support the exorbitant privilege of a reserve currency and exceptional bullshit"
Re: Imagined Reality 2015
Hedge Fund Manager Hugh Hendry:
"China is set to record its weakest growth in GDP in 25 years. Yet it seems to have entered a bull market and may be where we deploy much more of our risk capital next year. That's because the recent exuberant run up in onshore Chinese equities seems to me to amply demonstrate the power of imagined realities."
Yellen on the Housing Bubble:
“For my own part,” Yellen explained, “I did not see and did not appreciate what the risks were with securitization, the credit ratings agencies, the shadow banking system, the S.I.V.’s — I didn’t see any of that coming until it happened.”